Australia Compact Construction Equipment Market Assessment Report 2023-2029: Caterpillar, Komatsu, Kubota, Hitachi Construction Machinery, and Volvo Lead the Industry

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Jan 09, 2024, 13:00 ET

DUBLIN, Jan. 9, 2024 /PRNewswire/ -- The "Australia Compact Construction Equipment Market - Strategic Assessment & Forecast 2023-2029" report has been added to ResearchAndMarkets.com's offering.

The Australia compact construction equipment market is expected to grow at a CAGR of approximately 5.09% from 2022 to 2029.

Compact excavators accounted for the largest market share of the Australia compact construction equipment market in 2022. Construction industry end-users accounted for Australia's most significant share of compact construction equipment; compact equipment sales grew sharply in 2021 post-pandemic. The sales increased due to rising infrastructure investment & housing sector across the country.

Compact excavators and forklifts have the most substantial market share in Australia compact construction equipment market. Investment in infrastructure development projects, including investment in housing schemes & transport facilities, supports the growth of the construction industry. Some major challenges include the growing risk of economic recession, supply chain pressures, and over-dependency on foreign labor forces.

Compact construction equipment has nearly 50% of overall construction equipment sales in the Australia compact construction equipment market. The most popular compact excavator is a 1.5-ton mini excavator. The highest-selling model is 18Z-1 (1.8 ton) in Australia. Western Australia is an epicenter and an essential player in the global mining industry. The region is a significant iron ore supplier with several projects, for instance, in the Pilbara region.

Caterpillar, Komatsu, Kubota, Hitachi Construction Machinery, and Volvo Construction Equipment are leaders in the Australia compact construction equipment market. These companies have substantial market share and offer diverse sets of equipment.

MARKET TRENDS & DRIVERS

Government's Infrastructure Investment Supports Compact Equipment Demand

The government planned USD 120 billion for infrastructure projects in the pipeline over ten years. The investment focuses on projects that improve long-term productivity, supply chains, and economic growth in various cities and regions.
Additionally, the government promised the investments to exceed USD 146 billion between 2021-2025. Private sector construction demand is projected to be between USD 8.0 and USD 9.5 billion 2023. The residential and commercial construction projects are expected to grow in 2023.
In 2023-24, the government will provide funding of USD 15.5 billion to support state infrastructure projects. The government includes road and rail infrastructure funding through the Infrastructure Investment Program under the National Partnership Agreement on Land Transport Infrastructure Projects. It supports the Australian compact construction equipment market growth.

Growth in the E-commerce Industry Prompts Investment in Warehouses Expansion Projects

Australia is one of the world's largest e-commerce markets; e-commerce spending reached USD 50.2 billion in 2022, a 13% increase compared to 2020. Further, NewCold logistics company, in Dec 2022, announced to invest USD 160.3 million to build its first warehouse in Sydney's west. Construction is designed to take place in two phases; the 1st phase will include a frozen pallet warehouse with 80,000 pallets.
The growing number of warehouse construction is projected to impact the Australia compact construction equipment market positively. Also, Woolworth (supermarket chain) announced its plans to construct two new automated warehouses at Moorebank Logistics Park in Western Sydney. The warehouses are anticipated to be operational by 2024.

Rise in Sales of Hybrid and Electric Compact Equipment in the Australia Compact Construction Equipment Market

Australia's Long-Term Emissions Reduction Plan aims to achieve net zero emissions by 2050. Construction equipment manufacturers and companies increasingly know the government's environmental regulations. Further, Volvo CE launched its new Volvo CE EC300E Hybrid Excavator in Feb 2023, an environmentally friendly option offering improved fuel efficiency.
The machine consumes less than 15% fuel and generates 15% less carbon emissions. In March 2023, Hitachi Construction Machinery announced it would launch new wheel loaders and excavators from Australia's popular ZW-7 and ZX-7 series.

Incorporation of Telematics System in Compact Equipment for Optimum Performance

Telematics is remote communications and informatics that are majorly used for fleet tracking or managing a group of vehicles and other assets. Off-road telematics can track the performance and location of both plant and equipment in real time.
On-road telematics provides operators with reporting data updated with information related to human resources. Such benefits will lead to the adoption of telematics.
In 2023, Volvo CE launched and integrated its new telematics system- CareTrack, in its articulated haulers (A25-A60), wheeled loaders (L60-L350), and excavators (EC140-EC950).

INDUSTRY RESTRAINTS

Shortage of Labor Force Hampering Construction Projects

In 2023, Australia continues to see a shortage of skilled labor. Affecting all industries and depleting labor resources, it shows no signs of diminishing.
National Skill Week's chairman reported a critical skilled labor shortage in the construction sector hampering the project delivery timelines in 2022. It was predicted that the deficit would reach 100,000 vacancies by 2023.
A labor shortage can lead to avoidable issues for the construction industry, such as increased workplace injury, extensive project delays, less quality control, and higher construction project costs.
According to Arcadis Construction Costs Index Report 2023, there will be more than 100,000 unfilled roles in the Australian construction industry.

Surge in Housing Construction Cost Negatively Impacts Housing Projects

Rising construction costs impact the Australian housing industry. The contractor is holding off building tens of thousands of homes across the region despite already gaining planning approval, mainly because of surging construction costs, with apartments and townhouses the majority of those shelved in Victoria region.
The Housing Association Industry mentioned the continuous rise of construction costs because of high energy prices and inflation. The cost of energy-intensive resources such as cement, glass & aluminum has increased tremendously.
According to the Australian Bureau of Statistics, in 2022, prices of commodities such as steel products witnessed a 42.1% increase.

VENDOR LANDSCAPE

Prominent Vendors

Caterpillar
Komatsu
Xuzhou Construction Machinery Group Co. Ltd. (XCMG)
Volvo Construction Equipment
Hitachi Construction Machinery
JCB
SANY
Kobelco
Hyundai Construction Equipment
Kubota
Bobcat

Other Prominent Vendors

John Deere
Yanmar
LiuGong
Takeuchi
Toyota Material Handling
Manitou
CNH Industrial
Mecalac
Kanga Loaders
HYSOON AUSTRALIA PTY LTD.
Yuchai
Task Forklift
Hangcha
Maximal
Ditch Witch
Haulotte Group
Faresin

Distributor Profiles

CJD Equipment
Semco Group
Tutt Bryant
Capital Construction Equipment
BPF Equipment
CEA
Forklifts Australia
Hitachi Construction Machinery Pty Ltd

SEGMENTATION ANALYSIS

Segmentation by Type

Excavators
Backhoe Loaders
Wheeled Loaders
Track Loaders
Skid Steer Loaders
Telehandlers
Forklifts
Aerial Platforms
Others (Articulated Loaders, Truck Carriers)

Segmentation by Application

Material Handling
Maintenance & Utility Works
Waste Management
Other Applications

Segmentation by End Users

Construction
Mining
Warehouse & Logistics
Other (Maintenance & Utility Works, Landscaping, Power Generation)

For more information about this report visit https://www.researchandmarkets.com/r/19hy5l

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